(Sharecast News) - Cancer therapeutics and women's health-focussed ValiRx updated the market on its proposed sub-licensing agreement with TheoremRx for 'VAL201' on Friday.
The AIM-traded firm previously granted an exclusivity period to 30 June, to enable TheoremRx to progress its financing round, on which the signing of the sub-licence depended.
While recent discussions with TheoremRx on its progress to financing remained positive, ValiRx said it expected that an extension to the exclusivity period would be requested.
The company said it intended to seek "more formal confirmation" of the progress, and would formalise its proposed extension following that.
It added that the letter of intent and proposed sub-license therefore remained non-binding, with no guarantee that the sub-licence would be executed, or that it would generate material revenues either within the expected timeframe, or at all.
"It is important to us at ValiRx to ensure that TheoremRx has sufficient funds to fully progress VAL201 prior to completing the sub-license and committing the project to their care," said chief executive officer Dr Suzy Dilly.
"As such, we have been taking great interest in their progress towards financing."
Dr Dilly said that, although the deadline did not expire until 30 June, the firm was preparing to negotiate an extension to ensure TheoremRx financing proceeded as expected.
"Despite a challenging market, the progress we have seen to date is promising and we remain confident that they are the right team for the project."
At 1328 BST, shares in ValiRx were down 4.14% at 20.85p.
Reporting by Josh White at Sharecast.com.
ValiRx (VAL)